Joined Nov 11, 2007
1,458 Blog Posts

Update on Abnormally Overbought SPY

I am watching the SPY to see how it is performing after reaching an abnormally overbought condition.

Below is a chart with SPY performance since being abnormally overbought plotted over the original study.

As the graph shows, SPY is currently under-performing the average of all performances when it has been abnormally overbought.

Since the 6th day has typically been the low point after this setup, it would not be a surprise to see some downside on Monday.

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